Why isn't overstocking warehouses an effective solution for a problem of low availability? it does not speed product time to market. it is an inefficient use of raw materials. it increases sales costs. it increases production costs. it increases inventory costs?

The answer to the question is (D) it increases inventory costs. When a company chooses to overstock warehouses, it runs the risk of increasing cost for controlling the inventory at best, and at worst it could end up creating waste if the materials are perishable. Even non-perishable products might need continuous maintenance to ensure that it is still of an acceptable quality, and thus it might end up incurring costs.